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October 13, 2010

Deming vs Drucker

Follow-up to Inspiring from MKN Chronicles

So far in my reading it seems to be that every management theory i've come accross can trace its routes back to one of the two contrasting ideas belonging to either Deming or Drucker.

From Deming's work arose the EFQM model. This model which was developed from the Deming circle and the importance of continuous self improvement emphasises the importance of all the enablers of an organisation to achieve the desired results. With this model, success isn't solely based on performance and that for the proccesses which achieve results to work efficiently, cooperation is needed to effectively coordinate all the enablers.

The contrasting view of Drucker, who coined the term Management by Objectives, placed heavy emphasis on target setting to harmonize the efforts of the organisation towards a specific goal. As this theory developed, Performance Management was born. Despite seemingly integrating the workforce into the target setting process, this method still relies heavily on the idea of setting objectives and reviewing performance against them.

I have also come accross the balanced scorecard strategy. While my reading into this is more limited that the previous methods I have mentioned it seems to me that this strategy has similarities to Performance Management with its reliance on metric data to assess the business. And while it does try to include other factors into how it assesses performance by including aspects such as customer opinion, it does seem to be more heavily focussed on the financial aspects. I have to read further into this strategy to fully understand it, but at the moment my first impressions are that it has many parallels with the ideas of Performance Management, and in a loose way has some rootes in the ideas of Drucker.

Both the Deming view and Drucker view (as well as their derivatives) have certain benefits, both have certain drawbacks, but until I have gained a more thorough understanding of them I shall not be delving into the critiques just yet. For now, I have many unanswered questions, many books at my side in which I hope some answers, and a few days of extensive reading.


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